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Can Price Intervention Policies Improve Diet Quality in Spain?

Listed author(s):
  • Radwan, Amr
  • Gil, Jose M.
Registered author(s):

    In this paper we estimate consumer demand for food taking into account some socio-demographic characteristics of consumers. To tackle the issue of unobserved heterogeneity among consumers we used the, recent developed, Exact Affine Stone Index (EASI) demand system. Data used come from matching two datasets: the National Expenditure and the National Health Surveys for Spain. The main objective of our paper is to examine the effect of different price intervention policies that aim to improve diet quality. These policies include taxing unhealthy foods (e.g. sweets; fat), subsidizing healthy foods (e.g. Fruit and vegetable) and a mixture policy that include taxing unhealthy and subsidizing healthy foods at the same time. Our results consistent with the literature suggesting that taxes (subsidies) have a significant but small effect on diet quality. However, taxes can increase public budget significantly which can be used to finance other policies as educational campaigns or complementary health policies.

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    File URL: http://purl.umn.edu/212698
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    Paper provided by International Association of Agricultural Economists in its series 2015 Conference, August 9-14, 2015, Milan, Italy with number 212698.

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    Date of creation: 2015
    Handle: RePEc:ags:iaae15:212698
    Contact details of provider: Web page: http://www.iaae-agecon.org/
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    7. Maria L. Loureiro & Rodolfo M. Nayga, 2005. "International Dimensions of Obesity and Overweight Related Problems: An Economics Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1147-1153.
    8. Senauer, Benjamin & Gemma, Masahiko, 2006. "Why Is the Obesity Rate So Low in Japan and High in the U.S.? Some Possible Economic Explanations," Working Papers 14321, University of Minnesota, The Food Industry Center.
    9. Lakdawalla, Darius & Philipson, Tomas, 2009. "The growth of obesity and technological change," Economics & Human Biology, Elsevier, vol. 7(3), pages 283-293, December.
    10. Chen Zhen & Eric A. Finkelstein & James M. Nonnemaker & Shawn A. Karns & Jessica E. Todd, 2014. "Predicting the Effects of Sugar-Sweetened Beverage Taxes on Food and Beverage Demand in a Large Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 1-25.
    11. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
    12. X. M. Gao & Timothy Richards & Albert Kagan, 1997. "A latent variable model of consumer taste determination and taste change for complex carbohydrates," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1643-1654.
    13. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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